(February 2024 re-upload)
South Korea expects production of radish and cabbage will decrease in 2024 compared to last year, while onion and green onion production will increase
The Korea Rural Economic Institute forecasts a reduction in the farming area dedicated to leafy root vegetables like cabbage, radish, and carrots, with carrots anticipated to experience the most significant decrease. Conversely, the acreage for cultivating onions, green onions, cucumbers, watermelons, and tomatoes is projected to expand. However, garlic, dried peppers, melons, pumpkins, strawberries, paprika, and green peppers are expected to see a decrease in cultivation due to factors like poor harvests, labor shortages, an aging population, and declining shipping prices. Despite a shrinkage in cultivation area, the total production of green peppers is anticipated to rise. Certain varieties of apples are expected to see a reduction in cultivation, while ‘Gamhong’ and ‘Cinano Gold’ apples are predicted to increase. Pear and sweet persimmon farming and production are forecasted to decline, whereas ‘Geobong’ and ‘Delaware’ grapes are expected to see an increase.
Promising market outlook for onions in India ahead of 2024
In 2023, around 18,000 hectares were allocated for cultivating white onions. This year, there’s been a notable increase of 10% to 14% in the cultivation area. Typically, 80% of these onions are intended for dehydration, 15% for fresh export, and the remainder for the domestic market. However, due to a governmental initiative to stabilize prices in India, fresh onion exports have been temporarily suspended. Consequently, a larger proportion of onions will be directed towards dehydration. This export ban on fresh onions is expected to last 3-4 weeks, after which we anticipate the possibility of its reversal by the government.
According to our projections, the price of fresh onions this season is anticipated to range between 10 INR/KG to 14 INR/KG. Consequently, dehydrated onion prices are predicted to decrease by 7 to 8%.
Recent upheavals in global trade and shipping, such as the Red Sea Crisis, have led to disruptions. Shipping companies are opting for longer routes, significantly increasing transportation costs. As a result, freight costs have surged by 3 to 5 times since the end of December. Despite the projected decrease in dehydrated onion prices, the CIF price is expected to remain relatively stable, with minor fluctuations of around 3 to 5%
High volatility in the Cloves Market worldwide
The cloves market is currently experiencing high volatility, characterized by tight supply across all origins. Although demand remains robust, buyers are maintaining their target price at approximately $9,000/mt FOB, while indications and offers from the producing regions are considerably higher. In Madagascar, the crop has concluded, and acquiring material in the market has been challenging since early January. There are reports of a substantial volume still held by farmers and collectors, who are withholding their cargo in anticipation of higher prices. This level of holding power in Madagascar is unprecedented, with indication prices continuing to rise, yet firm offers are not yet available.
In Indonesia, it is the off-season with limited stock, and offers are presented at elevated levels. The reduced supply from Madagascar has redirected demand towards Indonesia, causing prices to escalate in this origin. The new crop in Indonesia is expected in June/July, and until then, there won’t be new arrivals from any origin.
Meanwhile, in Sri Lanka, the clove crop is experiencing poor yields, resulting in minimal arrivals and soaring prices for Sri Lankan cloves.
Black Pepper market struggling in Vietnam with many farmers continuing to switch to other profitable crops
The black pepper crop is gradually arriving in some regions of Vietnam, with the peak season anticipated in late February or March. However, the overall crop quality is not favorable, primarily due to a decrease in plantation size in recent years. Low market prices have prompted farmers to replace pepper trees with coffee, passion fruit, jackfruit, and now durian trees. Raw material suppliers have temporarily ceased offering prices due to a prolonged holiday period, resuming work around February 19th (considered an auspicious day according to the Lunar calendar). Exporters have also postponed purchases since early January, awaiting new arrivals post-holiday. They anticipate securing better prices with increased arrivals, and freight rates are expected to improve after the rush period before the extended holiday.
The market is currently in a pending state, with demand and supply expected to align after the holiday, providing a clearer picture of market trends.
Garlic prices have surged over 493% year-on-year in India due to supply shortages
In January 2024, India experienced a significant year-over-year surge of 493.31% in the wholesale prices of fresh garlic, rising from USD 0.54 per kilogram (kg) in January 2023 to USD 3.19/kg. Additionally, there was a 21.75% month-on-month increase from USD 2.62/kg to USD 3.19/kg in February 2024. Since the start of 2023, garlic prices in India have consistently risen, indicating sustained growth.
The spike in garlic prices in Odisha is attributed to dwindling supplies from Indore and Uttar Pradesh, leading to nearly a doubling of prices in recent days. This unprecedented increase has posed challenges for consumers. The scarcity is linked to nationwide crop damage caused by extreme weather conditions, depleting old garlic stocks. Furthermore, residents have highlighted the crucial role of garlic in the kitchen and expressed concerns about managing household expenses.
Garlic prices have risen due to the failure of one crop and delays in harvesting another. Garlic is cultivated in two seasons, kharif and rabi. The first crop, primarily from states like Gujarat and Madhya Pradesh, arrived late, contributing to the shortage. Factors such as delayed monsoons, reduced harvest, and declining groundwater in key states have worsened the situation, prolonging the harvesting process and delaying the expected market recovery until January 2025.
The US invests $28.6 million to support 12,000 spice farmers in Peru
The United States government, through the USDA, is launching a $28.6 million project called People, Nature, and Spices Partnership (PENS) to strengthen the value chain of ginger, turmeric, and oregano in Peru. PENS aims to benefit over 12,000 farmers and improve their productivity, food security, and access to global spice markets. The project will focus on sustainability, empowering farmers to meet international regulations and standards and will be implemented in collaboration with the Peruvian government and private sector partners.
West and Central Asian countries favor Vietnamese ginger and turmeric, exports in 2023 reached more than 1,200 billion VND
In 2023, Vietnam exported 34,976 tons of ginger and turmeric, generating a total turnover of 49.3 million USD. China stands out as the primary market for purchasing these commodities from Vietnam, holding 29.4% of the market share. Vietnamese fresh ginger is gaining traction in Australia, India, Pakistan, and various European countries, indicating significant potential for exporting ginger from Vietnam to these markets.
Garlic exports fall in volume -21.9% in towards the end of 2023 in Peru
In December 2023, Peruvian garlic exports experienced a decrease of 21.9%, totaling 2,072 tons compared to the corresponding period in 2022. The main importers were Mexico, responsible for half of the imports, and the United States, accounting for 31% of the total. Leading the export effort were G&L Foods S.A.C., contributing 22% of the exports, and Agroexportadora Sol de Olmos S.A.C., contributing 15%. In total, there were 36 registered buyers involved in the export process.
Potatoes expected to continue rising in prices in Ukraine for the foreseeable future
UNIAN reports that potato prices are expected to continue rising in the spring, as imported products entering the market will not be priced low. Analysts note that potato prices have reached a remarkable level of 18-23 hryvnias per kilogram, which is four times higher than last year’s prices. The surge in prices is attributed to various factors, including challenges in potato cultivation due to unpredictable weather conditions, prompting farmers to prioritize other vegetables, a decrease in the harvest in Europe, and product quality issues that do not meet the requirements for long-term storage.
Experts highlight the complex dynamics in Ukraine’s potato market, where price fluctuations are influenced by both internal production challenges and external trade factors.
It is worth mentioning that imported tomatoes from Turkey have also increased in price by 20% in Ukraine. Conversely, as of January 26, greenhouse cucumbers were mainly sold at prices ranging from UAH 70 to 100 per kilogram, which is on average 10% cheaper than at the end of the previous week. Additionally, the price of beet has decreased, with sales ranging from UAH 10 to 14 per kilogram, marking an average 14% decrease compared to the end of the previous working week.
Mexico is among the world leaders in green chili production
Mexico, the world’s third-largest green chili producer, witnessed a production increase from 3,086,000 tons in 2021 to 3,237,000 tons in 2023, exporting to 47 countries. The primary production hubs were in Sinaloa, Chihuahua, and Zacatecas, which collectively accounted for nearly 60% of the national volume. The United States stood as the top importer, contributing to over 1,047 million dollars in profits in 2022. Green chilies, renowned for their richness in vitamins A, B, C, and E, are harvested year-round, with the largest collections typically occurring in the second half of the year.
Ceylon cinnamon exports from Sri Lanka expected to improve further due to high quality
The International Finance Corporation (IFC) and the Sri Lanka Export Development Board (EDB) recognized the first batch of Geographical Indication (GI) certified Ceylon Cinnamon growers in Sri Lanka, supported by the European Union (EU) and other industry stakeholders. Ceylon Cinnamon is the second largest agricultural export crop in Sri Lanka and obtaining the GI certification from the EU will help increase market differentiation and product turnover for the spice. The certification is expected to lead to an increase in exports for Sri Lanka, higher income, and employment generation across the cinnamon value chain.
Anticipated Surge in Vietnamese Pepper Prices Post-Tet With Global Production at a Five-Year Low in the 2023/24 Season
Following the Tet holidays, Vietnamese pepper prices are expected to rise due to increased purchasing power from Chinese traders, particularly at the beginning of the second quarter of each year. Despite the ongoing economic crisis, other markets are anticipated to resume buying activities, potentially leading to a further decline in year-end inventories.
Experts foresee a decrease in pepper production in the three major producing countries: Vietnam, India, and Indonesia. As a result, global pepper production for the 2023/24 season is projected to hit its lowest point in the last five years.
Climate change has impacted the 2023/24 harvest season, causing a delay compared to the previous year. Vietnam’s pepper production in 2024 is estimated to be around 170 thousand tons, marking a 10.5% year-over-year (YoY) decrease.
Spanish fresh vegetables most affected by the ongoing protests in France leading to uncertain supply chain
Ongoing farmers’ protests in France are causing significant disruptions to Spanish fruit and vegetable exports. These protests have led to attacks on trucks, destruction of goods, and transit delays, impacting exports such as pepper, cucumber, lettuce, tomato, cabbage, citrus fruits, and strawberries. Additionally, the protests are causing issues at source markets, resulting in harvest delays and transportation difficulties. In January 2023, Spanish fruit and vegetable exports were valued at 1,636 million euros. The Spanish Federation of Associations of Producers and Exporters of Fruits, Vegetables, Flowers, and Live Plants (FEPEX) has appealed to the European Commission and French authorities to ensure the free transit of goods.
Sesame Seed Price in India Decreased by 17.72% MoM Due to Weak Exports and Local Consumption
In Baran, Rajasthan, India, the wholesale price of sesame seed dropped by 17.72% month-on-month (MoM) to USD 1.30 per kilogram (kg) in W3. Since the beginning of 2023, sesame prices in India have consistently remained above the levels observed in 2022. However, prices experienced a sharp decline starting in November 2023, and by January 2024, they fell below the prices observed in January 2023.
Several factors contribute to the decrease in sesame seed prices in India. One key factor is weak exports, particularly from the Chinese market, as Chinese buyers increasingly turn to Tanzania for sesame seeds due to competitive pricing and good quality. Consequently, Indian sesame seed exports decreased by 26.7% year-on-year (YoY) in volume to 13.5 thousand metric tons (mt) and dropped 6.1% in value to USD 31.58 million in November 2023.
Furthermore, low local demand stemming from a sluggish economy and limited trade activities further depressed sesame seed prices in India. Although the winter season typically sees a significant uptick in sesame seed consumption within domestic markets, concerns about global exports arising from conflicts in Sudan and Yemen may lead to a rebound in prices in the short term.
India seeks to increase stagnant oilseed production to reduce vegetable oil imports
India is aiming to bolster its domestic production of oilseeds with the goal of reducing its reliance on costly vegetable oil imports. As the world’s largest importer of vegetable oil, the country spent $20.8 billion on edible oil purchases in the fiscal year ending in March 2023. Finance Minister Nirmala Sitharaman has outlined a strategy to achieve self-sufficiency in oilseeds production, targeting crops such as rapeseed, groundnut, sesame, soybean, and sunflower. The plan entails research into high-yield varieties, adoption of modern farming techniques, establishment of market linkages, guaranteed procurement, value addition initiatives, and crop insurance schemes.
Tomato Prices Surge in the UK Amidst Rising Costs and Climate Challenges
Tomato prices in the UK have recently surged, driven by a notable increase in production costs since 2022, which is the highest among the country’s primary fruit and vegetable producers. Wholesale tomato prices have hit a 50-year peak, reaching USD 4.12 per kilogram (GBP 3.26/kg) in 2023. Climate change and escalating production costs are expected to lead to a reduction in UK tomato production in 2024.
Ukrainian Greenhouse Tomato Prices Rise 20% Week-on-Week
Greenhouse tomato prices in Ukraine have seen a 20% week-on-week increase due to high demand and limited supply. The price hike is also influenced by unstable volumes from Turkey. Local plants are unavailable for sale due to seasonal factors. Currently, only Poland offers higher prices for greenhouse tomatoes in the monitored region, averaging USD 2.6/kg. Imported tomatoes in Ukraine are now 22% pricier compared to the end of January 2023.
Kozaklı Tomatoes Enter Netherlands Markets with Geothermal Advantage
Tomatoes grown in the Kozaklı district of Nevşehir, Turkey, utilizing geothermal water, are now being exported to European markets, particularly the Netherlands. With geothermal water heated to 90 degrees, the district achieves significant energy cost savings by warming buildings and greenhouses. Annually, Kozaklı yields approximately 15 thousand tons of tomatoes, half of which are destined for the Netherlands, with the remainder distributed domestically and across other European countries. Expansion plans aim to increase greenhouse areas to 600 thousand square meters (sqm), creating job opportunities for 350 families, primarily benefiting women.
Mexican Roma Tomato Prices Reach Record Highs in Week 4
Mexican Roma tomato prices have continued to soar during week 4 of 2024, setting record highs. The primary exporting region, Sinaloa, faces lower-than-expected harvest volumes due to unusual weather conditions in key production areas. Free on board (FOB) McAllen prices for 25 pounds (lb) across various size categories, including Jumbo, X Large, Large, and Medium, range from USD 33 to 35. These elevated prices are anticipated to persist in the coming week, reflecting ongoing supply challenges.
Morocco Experiences 30% Decline in Tomato Production Amid Extreme Weather
Morocco anticipates a 30% drop in tomato production for the 2023/24 season, attributed to extreme weather conditions such as high summer temperatures exceeding 50 degrees Celsius and early frost affecting ripening. Despite this, tomato exports to the European Union (EU) have significantly increased, with 727 thousand tons delivered in the 2022/23 season. The potential impact of disease on exports has not been commented on by the Moroccan Association of Fruit and Vegetable Producers (FIFEL).
Russia Sees 0.4% Decline in Tomato Prices
In Russia, tomato prices decreased by 0.4% from January 16 to 22, 2024, following a substantial year-on-year increase in December 2023. Cucumber prices rose by 40% and continue to grow at a slower rate, with a 0.98% week-on-week growth. Other fruit and vegetable prices in Russia rose by 24.19% in 2023, with varied trends observed among different produce categories.
Potato Prices Surge in Brazilian Wholesale Market
Potato prices have surged across all wholesalers in Brazil due to reduced supply from southern regions owing to persistent rains and planting challenges. In São Paulo, the average wholesale price for special agate potatoes has reached USD 31.34 per 25 kilograms (BRL 155.15/25kg), marking an 8.86% week-on-week (WoW) increase. Similarly, in Rio de Janeiro, potato prices saw a 10.34% WoW increase, with a bag selling at USD 26.43/25 kg (BRL 130.83/25 kg).
Ukraine Grapples with Surging Potato Prices and Cross-Border Impact
Potato prices in Ukraine surged by 12% week-on-week in week 4, primarily due to constrained supply and quality concerns during the harvest. Prices range from USD 0.48 to USD 0.67/kg (UAH 18 to 25/kg). This scarcity has led to an increase in imports, mainly from Poland, where prices are 20% lower. However, heightened engagement of Ukrainian importers has also pushed prices up in Poland. Current potato prices in Ukraine are four times higher than those observed in 2022, with expectations of further increases due to potential supply shortages.
Moldova Grapples with Potato Price Surge Amid Depleting Reserves
Wholesale potato prices in Moldova have witnessed a surge of 10 to 12%, reverting to early January 2024 levels, ranging between USD 0.39 to 0.50/kg (MDL 7 to 9/kg). Despite importing more affordable Belarusian potatoes, Moldova’s native potato reserves are depleting rapidly, potentially leading to the country having the most expensive potatoes. Additionally, plans to import potatoes from Egypt in early February 2024 are expected to incur substantial costs.
Australia Prepares for Potato Shortage Despite Climate Change
Australian potato farmers anticipate a significant future potato scarcity, attributing it to increased extreme weather events. Already by January 2023, there was a shortage of potatoes for fast-food and chip production chains due to weather-related storms and heavy rainfall in Victoria and Tasmania. With the frequency of heatwaves expected to rise, potato cultivation faces further strain. Analysts predict Australia will become a significant potato importer in the future, as importing is likely to be more economical than domestic cultivation.
Russian Potato Union Advocates for Increased Import Duties Amidst Record Production
The Potato Union in Russia proposes increasing import duties on potatoes and their products to protect the domestic market amidst a record harvest. The union suggests raising the import duty from 5% to 15% to address problems arising from additional export customs duties imposed since October 1, 2023. Russia’s potato production volume reached 8.6 million tons in 2023, marking an 18% year-over-year (YoY) increase.
Egyptian Government Projects Drive Potato Production Surge Amid Varied Projections and Export Potential
Egypt is experiencing a significant increase in potato production due to extensive land reclamation projects by the government. However, estimates and export volumes vary among producers, with some expecting consistency with the previous season and others predicting a price increase due to heightened demand. Despite concerns about frost shortages and increased area under cultivation, large areas with higher productivity are expected to drive a surge in potato production by 2.5 million tons.
Zimbabwe Suspends South African Potato Imports Over Pepper Ringspot Virus Concerns
Zimbabwe has temporarily halted imports of South African potatoes due to the detection of the pepper ringspot virus (PepRSV). While manageable, the virus has been confirmed in various potato production regions since 2020. The government has introduced quarantine measures and lifted them on fresh potatoes. Symptoms of the virus include ringspot symptoms on tubers and leaves, with the government conducting surveys to determine the extent of its spread.
Potato Production in Tajikistan Surged by 4.6% in 2023
Tajikistan achieved its most productive potato harvest in 2023, with a gross yield of 1.145 million tons, marking a 4.6% year-over-year (YoY) increase. Most of the harvest was cultivated on farms and public farms, with approximately 111 kg of potatoes per capita produced. The country’s potato yield reached about 240 centners per hectare (ha), ranking second in the region after Uzbekistan. Tajikistan’s potato stocks also increased, reaching nearly 176 thousand tons.
